Safe and Sound

PARAMOUNT BAPTIST CHURCH

Washington, DC-based PARAMOUNT BAPTIST CHURCH is an NCUA-insured credit union founded in 1983. Regulatory filings show the credit union having assets of $144,933, as of December 31, 2017.

Its 511 members currently have $105,436 in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $56,643.

Overall, Bankrate believes that, as of December 31, 2017, PARAMOUNT BAPTIST CHURCH exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial strength, capital is key. When looking at safety and soundness, more capital is preferred.

PARAMOUNT BAPTIST CHURCH achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

PARAMOUNT BAPTIST CHURCH appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

PARAMOUNT BAPTIST CHURCH scored 28 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

PARAMOUNT BAPTIST CHURCH received above-average marks on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.

One indication that PARAMOUNT BAPTIST CHURCH is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher than the average for all credit unions.

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.

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